Japan didn't drink coffee, so Nestlé targeted their youth

After World War II, Western companies rushed to capture the Japanese market. McDonald's opened its first franchise in 1971. KFC launched in 1970, eventually making fried chicken a Christmas tradition. Western brands were reshaping Japanese consumer habits - except when it came to coffee.

While instant coffee was booming across Europe and America, Japan remained firmly loyal to tea. This wasn't just a matter of taste. Tea was deeply woven into daily routines, social rituals, and cultural identity for centuries. Nestlé saw the opportunity but couldn't crack the code. After multi-million dollar ad campaigns, promotions, and discounts all failed, they decided to hire psychoanalyst Clotaire Rapaille, who uncovered a simple but powerful insight:

People don’t buy what’s new, they buy what feels familiar.

In markets where coffee already has emotional roots, think café mornings or family brunches, the connection is easy. In Japan, that emotional connection didn’t exist. So instead of pushing instant coffee straight to adults, they launched coffee-flavored candies and treats, subtly planting the taste into the Japanese youth.

A decade later, those children grew into adults. And suddenly, coffee didn’t feel foreign anymore. Demand didn’t just rise; Japan’s entire coffee culture shifted. By 2010, coffee consumption had surged, and Nestlé sat at the center of one of the world’s most valuable coffee markets. Today, Japan is the third largest coffee consumer in the world after the United States and Brazil.

Source: Mashed

At a glance, McDonald's looks like the world's largest fast-food chain. Over 36,000 locations in 100+ countries. Billions of burgers served.

But peel back one more layer and you find something unexpected: more than 60% of McDonald's global operating income comes from rent and royalties, not Big Macs.

The Real Business Model

McDonald's doesn't just license its brand, it often owns the ground beneath it. The company controls about 45% of the land its restaurants sit on and over 70% of the buildings.

Former McDonald's CFO Harry J. Sonneborn said it best: "We are not technically in the food business. We are in the real estate business. The only reason we sell fifteen-cent hamburgers is because they are the greatest producer of revenue, from which our tenants can pay us rent."

In 2024, McDonald's kept 80% of franchise revenue as operating profit. Company-operated stores? Only 15% after covering food costs, labor, and overhead.

Why This Model Works

This setup gives McDonald's structural advantages most restaurant chains can't match:

That's why 95% of McDonald's restaurants are now franchised. Company-operated restaurants drive volume, but franchised locations drive margins.

The McDonald’s Monopoly promotion isn't just iconic, it's a confession.

Source: Wallstreetsurvivor

You've been waiting in the Space Mountain line for 40 minutes. Your feet hurt. But you're finally 10 people away from the front.

Then suddenly, six people squeeze past you.

"Hey! Thanks for saving our spot!"

Their friend has been holding a place in line while the entire crew wandered off to play carnival games, grab churros, and take Instagram photos. What the fuck.

One person saves a spot for someone in the bathroom? Fine. Helping all your friends cut 100 people? That’s rat behavior. The crazy thing is they probably think they are clever too.  But hey, credit where credit is due for activating their only two remaining brain cells for this level of mental gymnastics.

But obviously this isn't you, right?

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